Pension Policy Statement

1.Introduction

1. Thimbleby Parish Council is required by law to provide pension provision for all employees.
2. The level of this provision is determined by the Government’s guidance on workplace pensions. Thimbleby Parish Council is registered with The Pension Regulator and will fulfil its statutory duties.
3. Historically, Thimbleby Parish Council has only employed a parish clerk

2.Eligibility

1. Any employee with earnings over £10,000 per annum will be auto-enrolled in a qualifying
2. pension scheme in line with the Government’s workplace pensions legislation.
3. Any employee with earnings below £10,000 may exercise their right to join a qualifying pension scheme.
4. If such an employee exercises their right to join, the employer must provide a pension scheme for that employee, but is not obliged to make employer contributions to any scheme
5. where the employee’s earnings are below the ‘earnings trigger for automatic enrolment’ £520 per month (for 2022-23 financial year).
6. Overtime and certain other allowances, as outlined in the Government’s guidance on
7. workplace pensions, are considered as qualifying earnings for pension calculations.
8. The Government may alter the above thresholds in the future.

3.Qualifying Pension

1. Parish councils may offer the Local Government Pension Scheme (LGPS) which offers a defined benefit pension but may also provide cheaper defined contribution providers of qualifying pension schemes.
2. Thimbleby Parish Council have chosen to adopt the state-run National Employment Savings Trust (NEST) as their qualifying pension scheme.
3. NEST is a defined contribution Pension scheme. This means that pension contribution rates are fixed throughout the term of the pension scheme, and are used to build up a pension
4. fund that is invested. The value of that pension pot will be used to purchase an annuity at the cessation of the pension scheme or provide other facilities that the future pensioner may choose.
5. Employee contributions for NEST are a minimum of 4% (or £10) of gross earnings per month.
6. Where the employee’s earnings are £520 per month or above the Council will additionally
7. contribute a minimum of 3% of gross earnings to the scheme which is specified in law.
8. Where the employee is an income tax payer, the Government will additionally contribute income tax relief on the employee’s contribution.
9. The above contribution rates are subject to change and will be determined by the pension scheme terms and conditions applicable at the commencement of the scheme, and also by any applicable government legislation.

4.Action required by employer

1. At the commencement of a contract of permanent employment. The Council shall determine what pension provision is applicable as per the Government’s guidance on workplace pensions.
2. Where the employee earnings exceed £10,000 per annum the Council shall auto-enrol the employee to the NEST pension scheme in line with the Governments guidance on workplace pensions
3. Where the employee earnings are less £10,000 per annum, the Chair of the Council (or a delegated Councillor) shall within 6 weeks of the start of the employment, write to the employee stating that the Council are offering a work place pension and that the employee has the right to join should they so wish. A template letter to assist with this action is attached at Appendix A. 
4. Should the employee decline their right to join a pension scheme the Clerk/RFO (or the delegated councillor) shall inform The Pensions Regulator during regular reviews.  
5. Where the employee exercises their right to join a pension scheme the Clerk/RFO shall enrol the employee with NEST in consultation with the Chair (or delegated Councillor).

5.Administration of workplace pensions

1. It will be the duty of the Parish Clerk to correctly administer all workplace pensions for employees of the Council.
2. Where this involves the Parish Clerk administering their own pension scheme, periodic reviews of the administration shall be carried out by a Councillor nominated by the Chair of the Council, in line with the Council’s internal checks and may be subject to audit.
3. The Clerk/RFO will ensure the Parish Council complies with their statutory responsibilities with The Pension Regulator, HMRC and DWP.
4. Payment to NEST will be made by Direct Debit wherever possible to reduce the cost of administration and recorded in the Parish Council’s accounts.

6.Review of pension provision

1. Where an employee with earnings of less than £520 per month has exercised the right to join a pension scheme, the parish clerk / RFO will assess their earnings each month to ensure the £520 threshold is not exceeded. Where it is exceeded, the Parish Clerk / RFO shall inform the Council’s Chair who will take the appropriate action, as determined by the Government’s guidance on workplace pensions.
2. Annually, each April the Parish Clerk / RFO will review the Government’s thresholds for workplace pension calculations to ensure the Council remails compliant with regulations.

7.Primacy

1. Where any conflict exists between this policy and the Government’s guidance on workplace pensions or the NEST terms and conditions, the latter law and contractual obligations shall have primacy.

8.Additional Information

• The Government’s guidance on workplace pensions: https://www.gov.uk/workplace-pensions   
• The National Employment Saving Trust (NEST) website: https://www.nestpensions.org.uk 
• The Pensions Regulator https://www.thepensionsregulator.gov.uk/en